Balancing electricity generation with demand in real time is the backbone of a stable and reliable electrical grid.
Market Agents are the key players in the balancing process as they settle the occurred deviations by monitoring the real-time imbalances and facilitating the settlement process, which may involve financial penalties or incentives to correct deviations.
An entity responsible for selling the electricity produced through a renewable energy project to the market, on behalf of a generator, by making economic offers to the Market Operator within a given electricity market.
The Market Agent informs the Market Operator each day about the expected electricity delivery amounts from the project they represent.
Dealing with the uncertainty of renewables
The expected electricity delivery amounts are based on weather forecasts that estimate renewable energy generation.
However, due to the unpredictable nature of renewable energy sources, unforeseen events like weather pattern changes can lead to imbalances between the forecasted and actual electricity deliveries.
Balancing the uncertainty
In such cases, the Market Agent communicates these imbalances to the Market Operator to reconcile the differences, ensuring that the initially communicated amount is matched.
How does Balancing work?
Balancing is the process of matching electricity generation with demand in real-time to maintain grid stability and ensure a reliable power supply.
Tackling Imbalances in the electricity market
Imbalances occur when the actual electricity generation or consumption deviates from the scheduled or contracted amounts.
The task of the Market Agent
To reconcile these imbalances between the buyer and the generator.
By monitoring the real-time imbalances and facilitating the settlement process, which may involve financial penalties or incentives to correct deviations.
Did you know...
Market Agents may request the historical data from the generator to be better equipped with knowledge and make more accurate decisions, reducing production and financial risks for the generator.
The Market Agents' main responsibilities
- Completing administrative procedures for market participation and settlement
- Representing the generator before relevant entities
- Creating the hourly selling program for the facility
- Bidding for electricity sales to the Market Operator platform
- Directly settling with market and system operators
- Managing billing and settling all electricity-related concepts
- Registration and transference of Guarantees of Origin
The entity responsible for operating and managing the electricity market in a specific region or jurisdiction.
Market Operators manage the financial aspects of the electricity system, including the day-ahead and intraday markets.
They receive and process bids for electricity sales and purchases, ensuring smooth management and settlement of all operations in these markets.
The Iberian electricity market (MIBEL), is managed by OMIE, operating the spot market.
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